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1990 Supreme(SC) 153

T. K. THOMMEN, A. M. AHMADI, K. JAGANNATHA SHETTY, K. N. SAIKIA, SABYASACHI MUKHARJEE
Sitaram Sugar Company LTD. : U. P. State Sugar Corporation LTD. – Appellant
Versus
Union Of India – Respondent


Advocates:
A.K.VERMA, A.Subhashini, A.V.RANGAM, ASHWINI KUMAR, D.N.Mishra, F.S.NARIMAN, G.GOPALAKRISHNAN, H.K.PURI, K.G.Bhagat, K.K.VENUGOPAL, K.PARASARAN ATTORNEY, L.N.Sinha, O.P.RANA, P.P.SINGH, RAJA RAM AGARWAL, S.C.GUPTA, S.KACHVALA, SHANTI BHUSHAN, SHARTHA RAJU, SUSHMA SURI, T.C.SHARMA, V.PARTHA SARATHI

JUDGMENT

THOMMEN, J.:- The petitioners are owners of sugar mills operating in the State of Uttar Pradesh in areas classified for the purpose of determining the price of levy sugar as West and East Zones. They challenge the validity of notifications dated 28th November, 1974 and 11th July, 1975 (Annexures 8 & 9) issued by the Central Government in exercise of its power under sub-section (3C) of S. 3 of the Essential Commodities Act, 1955 (Act No. 10 of 1955), as amended to date, (hereinafter referred to as the Act).*1 The petitioners do not, and cannot, challenge the validity of the sub-section by reason of Art. 31 B of the Constitution of India. By the impugned orders, the Central Government fixed the prices of levy sugar for 1974-75 production. For the purpose of determining the prices, the country is divided into 16 zones, and the prices fixed for various grades of sugar in terms of S. 3 (3C) of the Act vary from zone to zone. Prices are determined with reference to the geographical-cum-economic considerations and the average cost profiles of factories located in their respective zones. Each State for this purpose constitutes a separate zone, while U.P. is divided into 3 zones and


















































































































































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